Abstract

This study was carried out to investigate the use of information technology (IT) and
information systems (IS) by Malaysian palm oil industry in managing their supply
chain. This study focused on Felda's palm oil supply chain which comprised of its
subsidiary companies namely Felda Plantations Sdn. Bhd., Felda Palm Industries
Sdn. Bhd., Felda Vegetable Oil Products Sdn. Bhd., Felda Transport Services Sdn.
Bhd. and Felda Marketing Services Sdn. Bhd.. Investigation was also made to
examine the extent of these palm oil companies in managing their primary and
support activities and how IT and IS support those activities to improve the
company's supply chain. In addition, the study was also done to investigate the
utilization of IT and IS in all levels and activities of the company's supply chain.
Data for the study were obtained through close-ended questionnaires that were
mailed to the respondents comprised of managers from Felda's companies that were
involved along supply chain. Data collected from the survey were analyzed using
descriptive analysis, regression analysis, correlation analysis and reliability analysis.Result showed that Felda has effectively managed its primary activities particularly
in estates, palm oil mills and refineries. Felda also has managed its inbound and
outbound logistics as well as its marketing activities effectively. However, the
results revealed that IT has not been fully used to effectively support certain primary
and support activities, particularly in estates operations. However, while IT has
made a lot of contribution to support palm oil mills support activities, it has made
less contribution to support their primary activities. Further, IT has contributed
significantly to support refineries' primary and support activities. At the same time,
the results revealed that IT has effectively support distribution and marketing
activities.
From the findings, several recommendations are given to assist Felda and other palm
oil based companies to enhance the management of their activities along their supply
chain and help them to be more competitive in the industry.